28

The Meeting of the Advisory Committee of State Regulators

of the

Federal Deposit Insurance Corporation

October 24, 2022

Federal Deposit Insurance Corporation Building

Washington, D.C.

Open to Public Observation via Webcast

October 24, 2022 – 2:00 P.M.

The meeting of the Federal Deposit Insurance Corporation 

(FDIC) Advisory Committee of State Regulators (Committee) was 

called to order by Martin J. Gruenberg, Acting Chairman, FDIC

Board of Directors.

Committee members in attendance: Bret Afdahl, Director, 

Division of Banking, State of South Dakota; Kevin R. Allard, 

Superintendent, Division of Financial Institutions, State of 

Ohio; Charles G. Cooper, Commissioner, Department of Banking, 

State of Texas; James M. Cooper, President, Conference of State 

Bank Supervisors; Thomas C. Fite, Director, Department of 

Financial Institutions, State of Indiana; Kevin B. Hagler, 

Commissioner, Department of Banking and Finance, State of 

Georgia; Melanie G. Hall, Commissioner, Division of Banking and 

Financial Institutions, State of Montana; Dawn E. Holstein, 

Commissioner of Banking, Division of Financial Institutions, 

State of West Virginia; I. Lise Kruse, Commissioner, Department 

of Financial Institutions, State of North Dakota; and Antonio P. 

Salazar, Commissioner, Office of the Commissioner of Financial 

Regulation, State of Maryland. 

Mary Gallagher, Commissioner of Banks, Commonwealth of 

Massachusetts; Greg Gonzales, Commissioner, Department of 

Financial Institutions, State of Tennessee; and Mick Thompson, 

Commissioner, Banking Department, State of Oklahoma, were absent 

from the meeting. 

 

Rohit Chopra, FDIC Director (Director, Consumer Financial 

Protection Bureau), also attended the meeting. 
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October 24, 2022

FDIC and FDIC contractor staff in attendance: James L. 

Anderson, Lisa D. Arquette, Daniel H. Bendler, Mary Calkins, 

Timothy J. Davin, Angela Dean, Debra A. Decker, Doreen R. 

Eberley, Michael P. Farrel, Gregory Gelzinis, Shannon N. Greco, 

Patricia S. Gurneau, Martin D. Henning, Rosilyn L. King, Ashley

M. Mihalik, Jonathan N. Miller, Shayna Olesiuk, Tara Oxley, Mark 

E. Pearce, Nikita Pearson, Harrel M. Pettway, Ariana L. 

Rambuyan, Lisa K. Roy, Betty J. Rudolph, Camille C. Schmidt, 

Michael Shaheen, James P. Sheesley, Michael E. Spencer, Mona L. 

Thomas, and Katrice L. Yokley. 

Acting Chairman Martin J. Gruenberg opened and presided at 

the meeting. Doreen R. Eberley, Director, Risk Management 

Supervision (RMS) and the Committee’s Designated Federal 

Officer, moderated the proceedings.

Introductory Remarks

Acting Chairman Gruenberg welcomed members to the first inperson meeting of the FDIC’s Advisory Committee of State 

Regulators. He acknowledged the passing of Committee member and 

colleague John Ryan, the former President and Chief Executive 

Officer of the Conference of State Bank Supervisors (CSBS), 

whose memorial service was scheduled for later that day.

Acting Chairman Gruenberg then welcomed new Committee 

Member James Cooper, the new President and Chief Executive 

Officer of the CSBS. 

Director Chopra made welcoming remarks of his own. 

Acting Chairman Gruenberg then turned the meeting over to 

Ms. Eberley to moderate the meeting.

 

Discussion of State Banking Conditions

Ms. Eberley introduced the first panel, which provided an 

overview of state banking conditions. Shayna Olesiuk, Deputy 

Director, Division of Insurance and Research (DIR) and Camille 

Schmidt, Section Chief, RMS, highlighted various aspects from

three sections of the FDIC’s 2022 Risk Review: economic 

conditions, market and liquidity risk, and credit risk. 
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October 24, 2022

Following their presentation, they invited members to 

comment on the information that was shared and discuss any 

additional risks that they have observed in their states. 

Commissioner Hagler raised concerns about liquidity in 

light of higher rates being offered by other entities, as well 

as declining market values of securities holdings. He also 

stated that the FDIC has done a good job conveying concerns 

about banks’ exposures to commercial real estate (CRE). 

Commissioner Hall expressed concerns about draws on home equity 

lines enabled by increased home prices. She also asked about

CRE levels relative to the previous crisis. CSBS President

Cooper commented that many central business districts are 

transitioning away from office space, which could create risk 

depending on how the use of office space evolves. Director 

Afdahl commented on the possible impact of inflation on low- to 

moderate-income individuals and families. Commissioner Salazar 

observed increasing foreclosure levels.

Director Chopra then offered the Consumer Financial 

Protection Bureau’s view of these risks, particularly as to nonbanks. 

State-Federal Coordination

Next, Ms. Eberley initiated a discussion of state-federal 

coordination. She started by sharing the efforts undertaken by 

RMS in relation to the FDIC’s return to banks plan. Then, Tara 

Oxley, Associate Director, Division of Depositor and Consumer 

Protection (DCP), discussed DCP’s implementation of the plan. 

Ms. Eberley then welcomed members to share their 

observations or suggestions as to what the FDIC should consider 

in its approach to examinations. 

Director Fite emphasized the importance of FDIC and state 

examiners working together in the hybrid environment. 

Commissioner Hall discussed returning to banks for examinations; 

she emphasized that Montana is committed to using a hybrid 

approach for examinations. She suggested training newer 

examiners on communicating difficult news to bank management in 

person. Director Afdahl commented on the importance of loan 

reviews in light of a potential increase in credit risk.
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October 24, 2022

Next, Ms. Oxley described the supervisory guidance that the 

FDIC issued last August concerning the practice of charging 

multiple non-sufficient funds fees for the re-presentment of the 

same unpaid transaction. She then discussed fees associated 

with authorize positive/settle negative transactions. 

Commissioner Hagler recalled that, years ago, MICR numbers 

on returned checks were altered with a hole punch so the check

could not be re-presented. He then asked if systems are able to 

identify re-presented items and replicate that type of process. 

Director Fite asked about how repeat submissions are identified. 

Commissioner Holstein inquired about examiner training on representment issues. Commissioner Hall stated that banks in her 

state are aware of the re-presentment issue, and they are 

evaluating their policies; however, they are uncertain of the 

expected analysis related to the lookback period. 

Michael Farrell, Counsel, Legal Division, then discussed 

the FDIC’s final rule issued in May relating to 

misrepresentations of insured status and the FDIC portal for 

submitting complaints about suspected misrepresentations 

regarding deposit insurance. 

Next, Jonathan Miller, Deputy Director, DCP, described the 

FDIC’s request for information relating to advertising and the 

use of FDIC logos. 

Following the presentations, discussion ensued regarding

the FDIC’s official sign and advertising rules related to FDIC 

insurance in light of the growing role of digital and mobile 

banking, third-party involvement, and resulting customer 

confusion. Members also discussed the final rule regarding 

misrepresentations of insured status.

Director Afdahl asked if there was a breakdown by type, 

such as how many complaints for crypto-related products the FDIC 

received. Commissioner Cooper shared that the State of Texas 

has had a lot of experience with non-bank entities claiming to 

be banks. Commissioner Hagler indicated that the State of 

Georgia has also pursued many fake banks and that it would be 

helpful if a federal agency focused on this issue. Commissioner 

Holstein shared concerns relating to third parties partnering 

with banks to offer crypto products. Commissioner Cooper 

commented that sometimes banks do not understand who their 
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October 24, 2022

partners are and what their partners are doing. Acting Chairman 

Gruenberg stated that banks have an obligation to conduct due 

diligence to understand their relationship with third parties

and the representations and misrepresentations they might make.

Amended Restoration Plan and Deposit Insurance Assessments

Ms. Eberley then introduced Michael Spencer, Associate 

Director, DIR. Mr. Spencer described the FDIC’s Amended 

Restoration Plan and the related deposit insurance assessment 

rate increase recently approved by the FDIC’s Board of 

Directors. He was joined by Ashley Mihalik, Section Chief, DIR. 

Following their presentation, members were welcomed to ask 

questions. Commissioner Hagler asked whether certain deposit 

insurance fund reserve ratios are based on past economic events 

and if a lower reserve ratio is now warranted because of 

regulatory changes, stronger capital positions, or better 

management of concentration risks. Acting Chairman Gruenberg 

commented on the rapid depletion of the deposit insurance fund 

during the financial crisis in 2008, which resulted in a five 

basis point assessment during the crisis. He indicated that the 

current assessment is intended to prevent this from happening 

again.

Minority and Community Development Banking Update

For the final agenda item, Ms. Eberley introduced Betty 

Rudolph, Director, Office of Minority and Community Development 

Banking, to provide an update on the Mission-Driven Bank Fund 

and the minority depository institution listening sessions in 

which she has been participating. 

Following her presentation, Ms. Rudolph welcomed members’ 

questions. 

Commissioner Hagler asked whether there is a list of 

minority depository institutions. Ms. Rudolph noted that there 

is a list published on the FDIC’s website. 
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October 24, 2022

Closing Remarks

Ms. Eberley thanked the members and presenters for the 

conversation. She then turned the meeting over to Acting 

Chairman Gruenberg for closing remarks.

Acting Chairman Gruenberg acknowledged two former members 

who had recently stepped down from the Committee: G. Edward 

Leary, who retired as Commissioner of Utah’s Department of 

Financial Institutions, and Charles Vice, Commissioner, Kentucky 

Department of Financial Institutions. Acting Chairman Gruenberg 

also recognized their contributions to the Committee. 

Acting Chairman Gruenberg emphasized the value of all 

members’ engagement and partnership, especially in person. 

 

With no further business to discuss, the meeting adjourned 

at 3:54 p.m.

 

_____________________________________________

Debra A. Decker

Federal Deposit Insurance Corporation

Executive Secretary

and Committee Management Officer

FDIC Advisory Committee of State Regulators
Meeting of the Advisory Committee of State Regulators

of the

Federal Deposit Insurance Corporation

Federal Deposit Insurance Corporation Building

Washington, D.C.

Open to Public Observation Via Webcast 

October 24, 2022 – 2:00 PM 

I hereby certify that, to the best of my knowledge, the attached 

minutes are accurate and complete.

________________________________

Martin J. Gruenberg

Chairman

Board of Directors

Federal Deposit Insurance Corporation